Title
Resolution - A Resolution of the City Council of the City of Mansfield, Texas, Approving a First Amendment to the Economic Development Agreement between the City of Mansfield, Texas, the Mansfield Economic Development Corporation, the Board of Directors of Reinvestment Zone Number Four in the City of Mansfield, Texas, and HD5 Entertainment, LLC; Finding that the Meeting at which this Resolution is Passed is Open to the Public as Required by Law; Authorizing the City Manager or his Designee, The MEDC Board President, and Chairman of TIRZ #4 Board, to Execute Said Agreement; And Declaring an Effective Date (General Fund, MEDC, TIRZ #4)
Requested Action
To Consider Approving the Resolution
Recommendation
To Approve the Resolution
Description/History
An Economic Development Agreement was approved by City Council on July 24, 2023 with High Five Entertainment as part of the entertainment district within Harvest Point, the first priority project to be developed in the district. Prior to the project commencing, the City was included in the state legislature's most recent update to Texas Tax Code Ch. 351, to enable collections of revenue pertient to Qualified Hotel projects. To benefit the QUalified Hotel, High Five Entertainment is being developed as a portion of the Qualified Project, as defined in the agreement. If you recall, this venue is approximately 45,000 square feet and will host bowling, laser tag, arcades, bars, restaurants, and other family entertainment across a two-story campus. This project will be located adjacent to a proposed hotel and conference center and this First Amendment allows for the construction of a rooftop performance venue above the building's second story.
Justification
Incentives for this additional development are included as a cash grant upon the commencement of construction of the project. Then, the developer will provide a 9% coupon payment to the City, or an amount equal to $675,000 annually for a period of twenty years. The project will also yield significant state sales tax revenue that can be used for the Qualified Hotel Project, and is estimated to generate over 1 million visitors per year.
Funding Source
General Fund, MEDC
Prepared By
Jason Moore, Executive Director of Economic Development